The Rental Rehabilitation and New Construction programs seek to increase the supply of affordable rental housing units in Bloomington without concentrating on low-income housing in specific neighborhoods.

Anyone is eligible to participate as long as the rental units are within the Bloomington city limits. We can help you bring your existing units up to code, so that the units provide energy-efficient, safe and sanitary environments for low-income residents and meet all ADA requirements.

General Program Requirements

The applicant must complete a loan application to be reviewed by the department staff to determine if the applicant meets the City's basic qualifications and underwriting requirements.

The HAND staff will assist the applicant in ensuring that the work to be done meets the department's program guidelines.

HAND will consider projects that are a 50/50 match with the applicant.

The rehabilitation shall not be done in such a way as to displace any tenant from the building.

Acquisition costs are not an eligible expense.

Projects consisting of five or more units must rent 20% of those units to tenants at 50% of income limits.

The "Affordability Period" is defined as the amount of time the property must maintain imposed HUD Rent Rates in exchange for the funding provided for the project.

Affordability Period Guidelines

Projects receiving $15,000 per unit or less must satisfy 5 year affordability period HAND financing on projects which continue to comply with HOME's affordability guidelines after 5 years are forgiven at 20% per year over 5 years.

Projects receiving $15,001-$40,000 must satisfy a ten year affordability period. HAND financing on projects which continue to comply with HOME's affordability guidelines are forgiven at 10% per year over the next 10 years.

New construction project affordability period is 20 years and the loan is forgiven at the end of the 20 year period.